408 RELATED PARTY TRANSACTIONS continued b. Transactions with related parties continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 106

38. SEGMENT INFORMATION continued

Segment revenues and expenses include transactions between operating segments and are accounted at market prices. 2014 Total before Total Corporate Home Personal Others elimination Elimination consolidated Segment results Revenues External revenues 18,763 6,682 64,000 251 89,696 - 89,696 Inter-segment revenues 10,652 2,667 2,686 1,632 17,637 17,637 - Total segment revenues 29,415 9,349 66,686 1,883 107,333 17,637 89,696 Expenses External expenses 16,014 5,407 37,243 1,655 60,319 - 60,319 Inter-segment expenses 6,561 3,487 7,526 63 17,637 17,637 - Total segment expenses 22,575 8,894 44,769 1,718 77,956 17,637 60,319 Segment results 6,840 455 21,917 165 29,377 - 29,377 Other information Segment assets 46,869 22,142 82,167 2,307 153,485 14,414 139,071 Asset held-for-sale - - 57 - 57 - 57 Long-term investments 147 1,613 7 - 1,767 - 1,767 Total consolidated assets 140,895 Capital expenditures 7,312 3,529 13,200 620 24,661 - 24,661 Depreciation and amortization 2,699 1,495 12,071 61 16,326 - 16,326 Impairment of assets - - 805 - 805 - 805 Provision for impairment of receivables 184 467 133 - 784 - 784 2013 Total before Total Corporate Home Personal Others elimination Elimination consolidated Segment results Revenues External revenues 17,041 6,669 59,028 229 82,967 - 82,967 Inter-segment revenues 8,549 2,794 2,358 909 14,610 14,610 - Total segment revenues 25,590 9,463 61,386 1,138 97,577 14,160 82,967 Expenses External expenses 15,211 5,939 32,991 980 55,121 - 55,121 Inter-segment expenses 5,164 2,946 6,472 28 14,610 14,610 - Total segment expenses 20,375 8,885 39,463 1,008 69,731 14,610 55,121 Segment results 5,215 578 21,923 130 27,846 - 27,846 Other information Segment assets 39,718 18,992 75,604 1,571 135,885 8,343 127,542 Asset available for sale - - 105 - 105 - 105 Long-term investments 182 101 21 - 304 - 304 Total consolidated assets 127,951 Capital expenditures 6,237 2,340 15,662 659 24,898 - 24,898 Depreciation and amortization 2,423 1,487 11,234 40 15,184 - 15,184 Impairment of assets - - 596 - 596 - 596 Provision for impairment of receivables 994 390 202 3 1,589 - 1,589 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended Figures in tables are expressedin billions of Rupiah, unless otherwise stated 107

38. SEGMENT INFORMATION continued

The Company predominantly generates revenue and profit within Indonesia. Revenue with respect to international interconnections and assets held by geographical location are disclosed in Notes 26 and 1, respectively.

39. REVENUE-SHARING ARRANGEMENTS “RSA”

The Company has entered into separate agreements with several investors under RSA to develop fixed lines, public card-phone booths, data and internet network and related supporting telecommunications facilities. As of December 31, 2014, the Company has 1 RSA with an investor. The RSA are located in Denpasar, Mataram and Kupang, with concession periods of 148 months. Under the RSA, the investors finance the costs incurred in developing the telecommunications facilities and the Company manages and operates the telecommunications facilities upon the completion of the construction. Repairs and maintenance costs during RSA period are borne jointly by the Company and investors. The investors legally retain the rights to the property and equipment constructed by them during the RSA periods. At the end of the RSA period, the investors transfer the ownership of the telecommunications facilities to the Company at a nominal price. Generally, the revenues earned in the form of line installation charges, outgoing telephone pulses and monthly subscription charges are shared between the Company and investors based on certain agreed amount andor ratio.

40. TELECOMMUNICATIONS SERVICE TARIFFS

Under Law No. 36 Year 1999 and Government Regulation No. 52 Year 2000, tariffs for operating telecommunications network andor services are determined by providers based on the tariff type, structure and with respect to the price cap formula set by the Government.

a. Fixed line telephone tariffs

The Government has issued a new adjustment tariff formula which is stipulated in the Decree No. 15PERM.KOMINFO42008 dated April 30, 2008 of the Ministry of Communication and Information “MoCI” concerning “Mechanism to Determine Tariff of Basic Telephony Services Connected through Fixed Line Network”. Under the Decree, tariff structure for basic telephony services connected through fixed line network consists of the following: • Activation fee • Monthly subscription charges • Usage charges • Additional facilities fee.

b. Mobile cellular telephone tariffs

On April 7, 2008, the MoCI issued Decree No. 09PERM.KOMINFO042008 regarding “Mechanism to Determine Tariff of Telecommunication Services Connected through Mobile Cellular Network” which provides guidelines to determine cellular tariffs with a formula consisting of network element cost and retail services activity cost. This Decree replaced the previous Decree No. 12PERM.KOMINFO022006.